The digital revolution is transforming the way insurers do business, and digital is more than a distribution channel. It offers an entirely new way of doing business, and affects all strategic and functional areas.
Opportunities and challenges in the digital age
Insurers face increasingly stringent regulations, a turbulent market, and an increasing pace of consumer and technological change. The industry has already seen property and casualty (P&C) insurers fail to innovate and seize new opportunities, resulting in new competitors stealing core markets with capabilities in customer proximity, retailing experience and responsiveness. Furthermore, digital technologies reduce the barrier to entry and leave the insurance industry vulnerable to threat from start-ups.
At the same time, new technologies are becoming more accessible to consumers and the insurance industry. Ultimately, this creates an opportunity for continuous innovation and dynamic change, enabling insurers to change existing business models, keep pace with changing consumer attitudes and create new opportunities that were previously unimaginable.
Impact of digital across the entire value chain
Digital presents opportunities for insurers to:
- Improve brand management and social media engagement.
- Optimize and personalize web experiences for consumers.
- Create seamless multichannel sales and service across existing and new channels.
- Foster a collaborative, digitally capable workforce.
- Develop, market, distribute and underwrite new products and services, underpinned with powerful analytics and personalization.
Keys to success
Accenture believes that for success in a digital environment, insurers must be able to apply new technologies in clever ways. In particular, several key digital technologies stand out as having the potential to reshape the future of insurance:
- Social media and gaming
- Digital platform optimization
- Cloud computing
Next week, I’ll discuss the three qualities that an insurer needs to cultivate for success in a digital era.
To learn more, download:
- Download the report for life insurers: Life Insurance | The Digital Insurer: Change Now to Get Ahead (pdf; opens in a new window).
- Download the report for property and casualty insurers: P&C Insurance | The Digital Insurer: Change Now to Get Ahead (pdf; opens in a new window).